The Impact of Corruption on Growth and Development

This study investigates the impact of corruption on growth and development at the global level and a country-specific level. It also investigates whether corruption "greases the wheels" or "sands the wheels" of the world's economies. To achieve the intended goal, the study uses worldwide data and country-specific data. empirical evidence strongly supports the view that corruption "sands the wheels" of economies across the globe. The study also finds that corruption hinders growth and development in a variety of ways, and costs the world economy an estimated $1 trillion paid in bribes every year, and $26 billion annually in stolen funds.At a country-specific level, the study finds that corruption is endemic in Haiti, impedes socio-economic development, and discourages foreign and domestic investments in the country. The consideration of two cases of corruption alone reveals that an estimated $504 million in one case and $2 billion in the other were embezzled.